LONDON, Aug 19 (Reuters) - European shares rose on Tuesday
to extend the previous session's rally, with Germany's DAX
index outperforming, driven by what traders saw as an
easing of tension in the Ukraine crisis.

European stock markets had rebounded sharply on Monday after
Russia's Foreign Ministry said some progress had been achieved
during talks between Russia, Germany, France and Ukraine over
the conflict.

Although the situation remained fragile - with Ukraine
government forces reporting new advances against pro-Russian
separatists - traders took consolation from the fact that the
situation had not worsened materially, in their eyes.

"The Ukraine situation is dragging on, which is a bit of a
concern, but on an underlying basis, the stock markets look OK.
People still want to be in the markets rather than out," said
Terry Torrison, managing director at McLaren Securities.

The pan-European FTSEurofirst 300 index, which is
still down by nearly 4 percent since mid-June, rose 0.4 percent
to 1,344.43 points.
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